China kept its benchmark lending rate, loan prime rate (LEP) unchanged for 19th straight month. However, earlier Monday morning, Chinese media Economic Transformation Daily reported the People’s Bank of China (PBOC) is unlikely to cut the medium-term lending facility (MLF) rate this year.
In PBOC’s most recent quarterly report on monetary policy, the central bank did not reference on its stance on monetary stimulus.
Some market strategist however believes China is likely to make another cut in Reserve Requirement Ration (RRR) before the end of the year to combat economic slowdown.
The PBOC’s one-year LPR rate remained at 3.85% while five-year LPR remained at 4.65%, according to National Interbank Funding Center.